Melton's proposal would threaten Michigan's worst-performing schools with a state takeover if they don't improve test scores. Melton says he wants Michigan to compete for hundreds of millions of federal school-reform dollars.

"To put the best application possible forward, we have to have this legislation passed," Melton says.

Melton says he and Republican Senate Education Committee Chairman Wayne Kuipers must reach a deal by December to be eligible for the federal money. But Kuipers says it's more important to get the reform plan right, than to rush legislation through.